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Leases | 3 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | Note 7 - Leases As of December 31, 2024, we have facility leases at 29 of our 32 campuses and two non-campus locations under non-cancelable operating or finance leases, some of which contain escalation clauses and requirements to pay other fees associated with the leases. The facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2036. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of December 31, 2024, resulted in minimal income. All leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets. As of December 31, 2024, we have entered into an additional real estate lease agreement that has not yet commenced with total minimum lease payments of approximately $2.5 million over a term of 7 years. The components of lease expense during the three months ended December 31, 2024 and 2023 were as follows:
|  | Three Months Ended December 31, |  |
Lease Expense |  | 2024 |  | 2023 |  |  |  |
Operating lease expense(1) |  | $ | 7,602 |  |  | $ | 7,660 |  |  |  |  |
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of leased assets |  | 227 |  |  | 227 |  |  |  |  |
Interest on lease liabilities |  | 70 |  |  | 82 |  |  |  |  |
Variable lease expense |  | 2,616 |  |  | 2,362 |  |  |  |  |
Sublease income |  | (29) |  |  | (33) |  |  |  |  |
Total net lease expense |  | $ | 10,486 |  |  | $ | 10,298 |  |  |  |  |
(1) Excludes the expense for short-term leases, which was not significant for the three months ended December 31, 2024 and 2023. Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate):
Leases |  | Classification |  | December 31, 2024 |  | September 30, 2024
Assets: |  |  |  |  |  |
Operating lease assets |  | Right-of-use assets for operating leases |  | $ | 155,666 |  |  | $ | 158,778 |
Finance lease assets |  | Property and equipment, net(1) |  | 3,710 |  |  | 3,937 |
Total leased assets |  |  |  | $ | 159,376 |  |  | $ | 162,715 |
Liabilities: |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities, current portion |  | $ | 21,688 |  |  | $ | 22,210 |
Finance lease liabilities |  | Long-term debt, current portion(1) |  | 957 |  |  | 934 |
Non-current |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | 144,409 |  |  | 146,831 |
Finance lease liabilities |  | Long-term debt |  | 3,589 |  |  | 3,834 |
Total lease liabilities |  |  |  | $ | 170,643 |  |  | $ | 173,809 |
(1) The finance lease assets and liabilities as of December 31, 2024 and September 30, 2024 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.9 million and $1.7 million as of December 31, 2024 and September 30, 2024, respectively.
Lease Term and Discount Rate |  | December 31, 2024 |  | September 30, 2024
Weighted-average remaining lease term (in years): |  |  |  |
Operating leases |  | 7.01 |  | 7.14
Finance lease |  | 4.08 |  | 4.33
Weighted average discount rate: |  |  |  |
Operating leases |  | 4.89 | % |  | 4.87 | %
Finance lease |  | 6.02 | % |  | 6.02 | %
|  | Three Months Ended December 31,
Supplemental Disclosure of Cash Flow and Other Information |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 5,426 |  |  | $ | 4,708 |
Financing cash flows from finance leases |  | 223 |  |  | 201 |
Non-cash activity related to lease liabilities: |  |  |  |
Lease assets obtained in exchange for new operating lease liabilities |  | $ | 2,481 |  |  | $ | 3,847 |
Maturities of lease liabilities were as follows:
|  | As of December 31, 2024 |
Years ending September 30, |  | Operating Leases |  | Finance Lease |
Remainder of 2025 |  | $ | 22,340 |  |  | $ | 898 |  |
2026 |  | 29,512 |  |  | 1,226 |  |
2027 |  | 28,986 |  |  | 1,263 |  |
2028 |  | 27,170 |  |  | 1,301 |  |
2029 |  | 26,474 |  |  | 439 |  |
2030 and thereafter |  | 61,831 |  |  | — |  |
Total lease payments |  | 196,313 |  |  | 5,127 |  |
Less: interest |  | (30,216) |  |  | (581) |  |
Present value of lease liabilities |  | 166,097 |  |  | 4,546 |  |
Less: current lease liabilities |  | (21,688) |  |  | (957) |  |
Long-term lease liabilities |  | $ | 144,409 |  |  | $ | 3,589 |  |
Leases | Note 7 - Leases As of December 31, 2024, we have facility leases at 29 of our 32 campuses and two non-campus locations under non-cancelable operating or finance leases, some of which contain escalation clauses and requirements to pay other fees associated with the leases. The facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2036. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of December 31, 2024, resulted in minimal income. All leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets. As of December 31, 2024, we have entered into an additional real estate lease agreement that has not yet commenced with total minimum lease payments of approximately $2.5 million over a term of 7 years. The components of lease expense during the three months ended December 31, 2024 and 2023 were as follows:
|  | Three Months Ended December 31, |  |
Lease Expense |  | 2024 |  | 2023 |  |  |  |
Operating lease expense(1) |  | $ | 7,602 |  |  | $ | 7,660 |  |  |  |  |
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of leased assets |  | 227 |  |  | 227 |  |  |  |  |
Interest on lease liabilities |  | 70 |  |  | 82 |  |  |  |  |
Variable lease expense |  | 2,616 |  |  | 2,362 |  |  |  |  |
Sublease income |  | (29) |  |  | (33) |  |  |  |  |
Total net lease expense |  | $ | 10,486 |  |  | $ | 10,298 |  |  |  |  |
(1) Excludes the expense for short-term leases, which was not significant for the three months ended December 31, 2024 and 2023. Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate):
Leases |  | Classification |  | December 31, 2024 |  | September 30, 2024
Assets: |  |  |  |  |  |
Operating lease assets |  | Right-of-use assets for operating leases |  | $ | 155,666 |  |  | $ | 158,778 |
Finance lease assets |  | Property and equipment, net(1) |  | 3,710 |  |  | 3,937 |
Total leased assets |  |  |  | $ | 159,376 |  |  | $ | 162,715 |
Liabilities: |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities, current portion |  | $ | 21,688 |  |  | $ | 22,210 |
Finance lease liabilities |  | Long-term debt, current portion(1) |  | 957 |  |  | 934 |
Non-current |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | 144,409 |  |  | 146,831 |
Finance lease liabilities |  | Long-term debt |  | 3,589 |  |  | 3,834 |
Total lease liabilities |  |  |  | $ | 170,643 |  |  | $ | 173,809 |
(1) The finance lease assets and liabilities as of December 31, 2024 and September 30, 2024 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.9 million and $1.7 million as of December 31, 2024 and September 30, 2024, respectively.
Lease Term and Discount Rate |  | December 31, 2024 |  | September 30, 2024
Weighted-average remaining lease term (in years): |  |  |  |
Operating leases |  | 7.01 |  | 7.14
Finance lease |  | 4.08 |  | 4.33
Weighted average discount rate: |  |  |  |
Operating leases |  | 4.89 | % |  | 4.87 | %
Finance lease |  | 6.02 | % |  | 6.02 | %
|  | Three Months Ended December 31,
Supplemental Disclosure of Cash Flow and Other Information |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 5,426 |  |  | $ | 4,708 |
Financing cash flows from finance leases |  | 223 |  |  | 201 |
Non-cash activity related to lease liabilities: |  |  |  |
Lease assets obtained in exchange for new operating lease liabilities |  | $ | 2,481 |  |  | $ | 3,847 |
Maturities of lease liabilities were as follows:
|  | As of December 31, 2024 |
Years ending September 30, |  | Operating Leases |  | Finance Lease |
Remainder of 2025 |  | $ | 22,340 |  |  | $ | 898 |  |
2026 |  | 29,512 |  |  | 1,226 |  |
2027 |  | 28,986 |  |  | 1,263 |  |
2028 |  | 27,170 |  |  | 1,301 |  |
2029 |  | 26,474 |  |  | 439 |  |
2030 and thereafter |  | 61,831 |  |  | — |  |
Total lease payments |  | 196,313 |  |  | 5,127 |  |
Less: interest |  | (30,216) |  |  | (581) |  |
Present value of lease liabilities |  | 166,097 |  |  | 4,546 |  |
Less: current lease liabilities |  | (21,688) |  |  | (957) |  |
Long-term lease liabilities |  | $ | 144,409 |  |  | $ | 3,589 |  |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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